The global agricultural biological market has witnessed substantial growth in recent times owing to the growing trend of eco-friendly and organic farming practices. Agricultural biologicals involve the use of natural or naturally-derived substances to enhance plant growth and manage pests, weeds & diseases without causing environmental hazards. Some key agricultural biological products include biopesticides, biofertilizers, and biostimulants which aid in nutrient uptake, stimulate plant immune systems and provide protection against various stresses.
The Global agricultural biological Market is estimated to be valued at US$ 14245.71 Mn in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period from 2024 to 2031.
Rising consumer awareness about harmful effects of chemical pesticides and preference for organic foods have prompted farmers to adopt sustainable farming techniques involving biological products. Additionally, support from government initiatives to promote bio-agriculture is aiding the industry expansion.
Key Takeaways
Key players operating in the agricultural biological market are Amezeus (HFS Group), Ather Energy, Bikeep, cycle works, EV Motors India Pvt. Ltd, Robert Bosch GmbH, RTL Group, Spelsberg, swiftmile, and Zoov.
Growing environmental sensitization and health concerns pertaining to residues of agrochemicals in food crops have been driving the demand for agricultural biologicals across major markets. Moreover, implementation of stringent regulations restricting the use of chemical pesticides in many countries is augmenting the demand for biological alternatives.
The global agricultural biological market has witnessed steady expansion into new geographical regions over the recent years. Major players have increased their production capacities and distribution networks across Asia Pacific, Latin America, and Middle East & African regions to tap the growth opportunities in the developing markets.
Market key trends
The use of digital agriculture and precision farming techniques involving sensors, IoT, analytics and predictive models is gaining traction in the Agricultural Biological Market Demand. Technology helps in monitoring soil conditions, controlling dosage and application of biological products, thereby improving productivity and resource efficiency. Furthermore, increasing R&D investments by key players for development of advanced biocontrol agents, biopesticides and microbial products is expected to introduce newer innovations and drive further market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: High R&D costs involved and well established players make entry difficult.
Bargaining power of buyers: Strong bargaining power of agricultural firms due to availability of substitutes like chemical products.
Bargaining power of suppliers: Suppliers have moderate power due to differentiated products requiring specialized research and manufacturing process.
Threat of new substitutes: Threat of alternatives like chemical pesticides and fertilizers remains moderate due to increasing awareness about organic farming.
Competitive rivalry: Intense competition exists among major players to gain higher market share through innovative product launches.
Geographical Regions
North America accounts for the largest share of the global agricultural biologicals market in terms of value due to increasing organic farmland and grower awareness about sustainable farming practices in the US and Canada. Asia Pacific is projected to grow at the fastest rate during the forecast period owing to rising population, growth in organic cultivation and government support towards eco-friendly crop protection methods in countries like India and China.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it